SPX fell beneath its 50-day Moving Average and appears to be doing a retest for probable resistance there. The EW pattern suggests that the Intermediate Wave (1) decline may extend to 1900.00 or below.

NDX broke its Short-term support at 3949.84 and is now dealing with mid-Cycle support at 3933.10. Failure to close back above it may impel the NDX down even further. The Broadening Wedge trendline is at 3920.00, which gives the NDX a potential 20% further decline.

The Hi-Lo index finally gave a confirmed sell signal. We could still see the Hi-Lo bounce back to its mid-Cycle resistance, but that may take a while to develop.

VIX is also on a confirmed sell signal and may be heading for the neckline of the inverted Head & Shoulders formation seen on the daily chart at 15.38.

Regards,

Tony

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Disclaimer: The content in this article is written for educational and informational purposes only. There is no offer or recommendation to buy or sell any security and no information contained here should be interpreted or construed as investment advice. Do you own due diligence as the information in this article is the opinion of Anthony M. Cherniawski and subject to change without notice.

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